Bug or Glitch?

I see, how do I get around this? If I choose not to use the optional effect, do I get another change to activate it once the chain is resolved?

Missing timing occurs if the activation condition is slated to occur on Chain Link 2. "When . . . You can" card text allows that.

It seems that your opponent practically banished it from the graveyard in the middle of the grave's effect activation. This means that the last thing that would happen is banishing and not the summon, and because of that, the effect is negated.-Yang Part 3

There are plenty of similar terms to missing the timing, such as effects getting activated but fail to resolve, though you'd have to look at the rulebook to decide - Yang Part 2

The culprit of missing the timing is usually optional monster effects, the ones that say “When this happens… you can do that.” When you choose to activate such a monster effect, the last thing that needs to happen is the condition for the action. For example, let’s say you have an effect stating: “When an Insect type monster you control is destroyed sent to Graveyard, you can special summon this monster from the hand.” In order to gain this effect, no other effects can occur before this effect begins. If an Insect type you control is assaulted by a card stating, “Destroy a card your opponent controls, then they draw 1 card,” then destruction isn’t the last thing happening, drawing is. Also consider the infamous Bottomless Traphole, which banishes a monster after destroying it. Since banishing is the last thing to happen, not the destruction, our Insect-support monster would miss its timing. So, its effect practically got negated.-Yang